PIEC and the Chamber’s Real Estate Working Group discussed PPP-related issues with the Parliamentary Committee on Construction, Urban Development, Housing and Communal Services. The Committee will be working with the CMU on regulatory issues affecting PPP such as urban development, rent, concessions, housing, and communal services. P3DP followed up by providing comments to the Committee on the draft law On Energy Efficiency of Buildings on January 16.
Kyiv, November 28, 2014 - USAID Public Private Partnership Development Program and the American Chamber of Commerce in Ukraine held a meeting of the Public Private Partnership & Infrastructure Expert Center aimed at discussing Turkish experience of public private partnership projects implementation as well as feasibility of using the country’s best practices to develop appropriate mechanisms in various sectors of Ukrainian economy.
Turkey has successful experience in implementing projects of public-private partnership based on flexible public policies to support municipalities in establishing joint projects with businesses. Thus, due to using public-private partnership mechanisms by the Ministry of Health , the country has built 25 hospitals that provide 25,000 beds for in-patient treatment. As another example, the Ministry of Transportation has implemented the construction of two airports in Istanbul as well as those in Ankara and Izmir, which continue to operate under the public-private partnership. Among others – projects in urban environment restoration, construction and development of industrial parks, techno-parks, shopping complexes, pipelines as well as waste management development.
Participants of the Expert Centre also learned about the plans of the Government of Ukraine to establish conditions for investment in national infrastructure, discussed the ways of interacting among representatives of all levels of state authorities, schemes of attracting private partners, projects management models, as well as issues on improvement of legislation. The Turkish colleagues, in their turn, shared their plans to develop business in Ukraine.
“Turkey is the regional leader in using public-private partnership to include the private sector in infrastructure projects,” said Tatiana Korotka, Head of the Chamber Expert Center; Director of Professional Services, Public Private Partnership Development Program (USAID). According to Ms. Korotka, there are many valuable lessons from Turkish experience which can help Ukraine as it develops and implements its own public-private partnership projects.
The experts believe that the use of public-private partnerships will help to solve a lot of problems in various sectors of Ukraine’s economy. In addition thereto, it is a possibility to increase the value of local management in regional development.
PPP and Infrastructure Expert Center (PIEC) held a successful promotional event on June 4 when Serhiy Nadal, Mayor of the western city of Ternopil, gave a talk about potential projects for the city. Mayor Nadal is familiar with PPPs as a mechanism for attracting private investment for public service projects and took the opportunity to discuss them with approximately 30 potential investors. He focused the need for private sector participation in healthcare, education, transportation, communal services, and other sectors. Energy efficiency and environmental protection were also highlighted. He was joined by members of the Ternopil City Council.
PIEC was established in May 2014 to serve as a platform for promoting PPPs. The meeting with Ternopil city officials was the first held by PIEC for showcasing opportunities in Ukrainian municipalities. PIEC plans to host other mayors of progressive cities to address issues and help prioritize reform and advocacy efforts.
A major challenge to improving the investment climate is getting the attention of government with recommendations, proposed legislation, or new ideas. For PPP development in Ukraine, this obstacle has been overcome through the launch this month of the PPP and Infrastructure Expert Center (PIEC), a joint effort by P3DP and the American Chamber of Commerce (AmCham) in Ukraine.
PIEC, which is based within the Chamber, will serve as a platform for businesses and other stakeholders to advocate for reforms that improve the environment for Public-Private Partnerships and investment into infrastructure. Activities and services will also include promoting opportunities and facilitating the closure of specific PPP agreements. By joining forces, P3DP and the Chamber are confident that the design and success of reform efforts will be increased.
The event, attended by approximately 80 representatives from the private sector, helped cement P3DP as an authority on PPPs in Ukraine. Since the launch, P3DP numerous companies have approached P3DP with questions about PPPs, including Nestlé. Andriy Bilousov, Deputy Minister of Regional Development, Construction and Housing and Communal Services of Ukraine and Andriy Bondarenko, Deputy Minister of Infrastructure of Ukraine, spoke at the event and expressed strong support.
AmCham, founded in 1992, represents foreign investors in Ukraine and is a strong advocate for policy reforms. The establishment of PIEC ensures that potential investors will have a voice in the development of Ukraine’s PPP policies and that PPPs will continue to develop after P3DP closes in September 2015.
News coverage of PIEC’s launch (Ukrainian)